STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has put forward a plan to establish a more centralized approach for the collective purchase of energy within the EU. This initiative would pool demand from member states and involve a market operator to oversee procurement activities. It aims to enhance the current system, which predominantly links buyers with potential suppliers, by broadening its scope. The proposal was presented by von der Leyen during a debate in the European Parliament. EU leaders are scheduled to discuss the mounting energy challenges at their summit on October 15 and 16.
Europe is experiencing renewed stress due to increasing fuel prices and higher import expenses. Von der Leyen highlighted that European gas prices have surged by 140% since late February, while diesel prices have doubled in the same period. Elevated fossil fuel imports have contributed approximately €100 billion to Europe’s energy costs. The European Commission advocates for targeted support for vulnerable households and assistance for industries under significant pressure.
Measures aimed at bolstering supply security and reducing refining costs are also being introduced by the Commission. On October 2, G7 nations agreed to release 100 million barrels through the International Energy Agency, with a four-month timetable that includes an early release of diesel supplies. Exporters will be granted an additional year of flexibility regarding EU methane standards. These steps are part of the EU’s broader response to the rising energy prices.
Moving Towards Centralized Coordination in Joint Energy Buying
The European Commission plans to initiate a strategic dialogue with European refiners focused on costs and supply conditions. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. The conversation will also cover energy needs related to Europe’s defense sector. Von der Leyen pointed out significant disparities among national electricity markets within the EU, noting that prices range from roughly €70 to €145 per megawatt-hour, depending on each country’s energy mix.
This proposed procurement system expands on joint purchasing measures implemented after Russian gas supplies sharply declined in 2022. The EU responded by pooling demand and establishing connections with alternative suppliers. Von der Leyen stated that Russian gas previously accounted for about 45% of EU gas imports, a share that has now fallen to around 12%. The European Commission’s goal is to cease Russian gas imports entirely by the end of 2026.
Linking Energy Security to Increased Electrification
As part of its comprehensive energy policy, the EU is boosting domestic renewable energy sources. Currently, over 70% of the bloc’s electricity is generated from domestic clean energy, including renewables and nuclear power. Last year, wind and solar energy produced more electricity than all fossil fuels combined. Additionally, Europe expanded its renewable capacity by over 80 gigawatts during that period, though many planned projects are still awaiting access to the electricity grid.
Electricity accounts for less than a quarter of the EU’s final energy consumption, but the Commission aims to raise this share to about 46% by 2040. Von der Leyen emphasized that wider electrification could reduce annual fossil fuel imports by up to €260 billion. The EU has plans for further measures to support grid expansion, renewable energy generation, and electricity utilization. When EU leaders meet later this month, energy prices and supply security are expected to remain key topics on the agenda.